Abstract

The reuse of salvaged parts from vehicles deemed to be at the end of their life is viewed as an opportunity by insurers and crash repair firms to reduce rectification costs and improve service to policy holders. This research investigates the opportunities and challenges that confront an important but under-researched part of the automotive supply chain in establishing a reverse logistics flow of salvaged parts. The aim of this paper is to explore why the development of a reverse logistics system for the reuse of salvaged parts has not been successful in the UK yet flourishes in North America and Europe. Through answering this question, the paper seeks to provide a framework for managing the development of a partial closed-loop reverse logistics system for salvaged parts. Economic and ecological benefits are identified as potential outcomes. The implications for practice and further research are discussed.